The US inflation number that could spark a major stock market rally today

ANALYSIS: At 8.30am ET on Wednesday (11 May, 2022) the US Bureau of Labor Statistics will release its monthly Consumer Price Index Report and there’s one key US inflation number that many analyst think could spark a share market rally.

The data will show the level of inflation across the States in April. You can read the report as soon as it is published right here.

The data release comes after a horror few weeks for most US equities, particularly the tech stock-dominated Nasdaq.

The bloodbath has been a result of rising inflation and the subsequent tightening of monetary policy by the Fed. Not to mention growing concerns about stagflation (when an economy stagnates, while inflation surges).

But should today’s US inflation number for April fall under one number in particular, the bulls could once again burst out of the gates.

That number is 8.5 percent (headline year-over-year).

Here’s why.

8.5 percent is the year-on-year CPI index gain recorded in March. This was the largest year-on-year lift in inflation since December 1981.

Should inflation come in under 8.5 percent when those results are released in a few hours time, then many will consider “peak inflation” to be behind us. It could even lead to renewed optimism that the bout of global inflation may well be transitory after all.

So, a year-on-year inflation advance below 8.5 percent and a peak inflation relief rally could be on the cards.

On the other hand, should inflation go higher the bears will roar.

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